A house brings with it a wealth of additional responsibilities, including practical matters such as maintenance and home insurance. There is no point in making this type of investment without determining the cost of home insurance. You need to ensure that you have the right type of cover in case of crisis.

Why home insurance is important

Aside from offering financial protection, there are many other benefits of home insurance:

  • Should your house get damaged, you can get repairs done in a timeous manner and don’t have to wait an extensive period to rake up the necessary funds.
  • If you have an emergency covered loss, home insurance will provide emergency repair services to protect and prevent your home from further damage.
  • If you can’t live in your home because of a mandatory evacuation, your insurance policy will cover your temporary living expenses – provided that your insurance claim is approved.
  • Some policy suppliers also offer a no-claim rewards incentive where homeowners can reclaim cash back after a specified number of premiums are paid.
  • A number of policy suppliers also provide the option to include unique provisions above and beyond the normal coverage offered, to effectively accommodate homeowners.

Get the right type of cover

Every homeowner should have buildings insurance as well as bond protection cover.

What if there is a natural disaster?

Buildings insurance covers the structure of your home as well as all permanent fixtures and fittings. One of the benefits of home insurance is that you will be able to file a claim to cover damage resulting from unexpected events like fire, flood and storm damage.

Protect yourself against unforeseen circumstances

Buildings insurance protects your home from costly damage caused by unforeseen circumstances. For instance, if your geyser bursts, the insurance will cover its replacement and any consequential loss up to a certain amount such as the costs of replacing tiles and painting.

What if you can’t pay your bond?

When you consider buying a property, look at all components of the required repayments to ensure you can afford them. The bank will grant you a bond in good faith. Anticipating that you will maintain a steady income and remain in good health. But what happens if something were to happen to you and your family to prevent you from paying your bond for any amount of time?

Bond protection insurance provides comprehensive cover in the event of death, disability, dread disease or loss of income. Your bank may not insist that you have this type of cover, but you should consider it anyway.

What buildings insurance costs

When you’re buying a house, the last thing you want is extra expense, but a small monthly payment now can spare you enormous financial strain later. Buildings Insurance cover can be tailor made for your specific circumstances, considering your situation as well as the value of your house.

Check the exclusions and excesses

For buildings insurance, the structure (what the building and the roof are made of) as well as the location affects the cost of premiums.

This type of homeowner’s insurance will always be subject to exclusions and excesses but will cover the bulk of your expenses if the loss forms part of an insured event.

Work out what you can afford

For bond protection insurance, your premiums are determined in line with various socio-economic factors that include monthly income, age, gender, smoker status and level of education.


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Until next time.

The MoneyShop Team


This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.